(Reuters) — Archer Daniels Midland reported a surge in first-quarter profit last month and forecast “significant year-over-year growth” in 2021 as coronavirus vaccinations accelerate and pandemic restrictions continue to ease, sending shares to a record high.
Quarterly profit jumped 76 percent as robust import demand from China and strong oilseed crushing margins boosted the American grains merchant’s core agricultural services and oilseeds unit.
ADM results offered an early glimpse into how the world’s largest grain traders are emerging from the pandemic that triggered massive shifts in food and fuel demand as consumers cooked more meals at home and avoided unnecessary travel.
Further easing of pandemic restrictions are expected to benefit major agribusinesses like ADM.
“We are seeing clear, favourable demand trends for many of our products, and we expect that pattern to continue as vaccine rollouts accelerate and restrictions ease,” ADM’s chief executive officer Juan Luciano said.